Armenia does not have any fossil fuel or coal reserves; therefore, it is entirely dependent on the imported fuel for transportation, electricity generation, and heat production.
While surrounded by countries that possess significant hydrocarbon reserves, Armenia’s fossil fuel reserves are limited to a small number of lignite or brown coal mines located in the vicinity of Gumri and Spitak. Oil drilling results have shown that while some oil reserves exist, they are located too deep to be economically viable for extraction.
On March 15, 2016 the RA National Assembly ratified a very important law package, aimed at development of solar energy sector in Armenia. Armenia has great potential for solar energy resources. The annual rate of solar energy collection per 1 square meter of flat surface is 1,720 kWh in Armenia, while in Europe the average is 1000 kWh.